F&I Management & Training

Cambria Automobiles has acquired a Vauxhall site in Southampton for an undisclosed sum.

This will be the AIM-listed group's first Vauxhall site and brings its representation up to 27 sites representing 39 franchises.

The south-east based group also announced in its pre-close statement, for the 12 months ended 31 August, that it has achieved another year of significant earnings growth despite the 9 per cent fall in new car market and 21 per cent fall in retail sales in the year to date. Despite a tough second half the group confirmed it will issue its first dividend.

"Following a strong first six months, the group experienced a mixed performance in the second half of the year, but remains on track to deliver full year results broadly in line with market expectations," it said.

Cambria said the acquisition of the Hartwell business was completed on 1 September.

"The Board is delighted to be partnering with Vauxhall and intends to pursue further opportunities with it. The acquired business has been loss making in recent years, and it is anticipated that the acquisition will be earnings dilutive in the short term while the Cambria systems and processes are implemented.

"We are confident of returning the business to profitability in the medium term. The business was acquired on a net asset basis and no goodwill was paid," it said.

Cambria confirmed it is looking for further businesses to acquire.

“I am pleased with the performance achieved by the group against a background of a very challenging new and used car market.

"We continue to use this market weakness to drive forward our buy-and-build strategy, utilising our strong balance sheet. We continue to out-perform our underlying markets and view the future with confidence notwithstanding the obvious short-term challenges the industry faces,” said Mark Lavery, chief executive officer.

Cambria trades as Doves, grange, Dees, Motor Parks and Invicta Motors.

Meanwhile, private equity group Promethean wants to sell all or part of its 33.3 per cent stake in Cambria. Promethean is locked in to its investment until 30 June 2012, unless Cambria agrees to an earlier exit.

DATED: 14.09.11

FEED: MT